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People who own up to what they have done could face penalties amounting to just 10 per cent of the tax they have evaded, on top of back taxes and interest going back up to 10 years.

Tax dodgers who fail to volunteer their actions face much tougher fines amounting to 200 per cent of their unpaid tax, as well as back taxes and interest, and in the most serious cases, prosecution.

The agreement between the two countries was originally scheduled to run to March 2015, but has since been extended to April 5 2016.

Dave Hartnett, permanent secretary for tax at HMRC, said the LDF had been an 'overwhelming success'.

He said: 'HMRC originally estimated the number of people who would register for the disclosure facility at 2,000, and that it would probably produce £1billion.

'In light of the ongoing success of the LDF we now anticipate the arrangements will produce up to £3billion from a much larger number of people.'

Co-operation between the UK and Liechtenstein authorities was recently strengthened further by a double-taxation agreement between the two countries to ensure people are paying the right amount of tax and not being taxed twice.

Source: HMRC

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Tax dodgers set to stump up £3bn from secret bank accounts in Liechtenstein